1 week ago
BSE Clears FTSE Russell Eligibility, Opening Door To Global Indices
FTSE Russell decides which stocks can be included in important investment indexes.
It said the Bombay Stock Exchange, or BSE, now meets the rules to be an eligible exchange.
This means BSE-listed stocks can be considered for FTSE Russell indexes.
It does not mean that every BSE stock will automatically enter an index.
BSE main-board stocks will first be checked in March 2027.
New companies launching IPOs on BSE may receive a faster screening process.
If a company is listed on both BSE and NSE, the NSE-listed version will be chosen when both pass liquidity tests.
NSE already qualifies for FTSE Russell indexes because it has more participation from international institutional investors.
Separately, NSE plans to add BSE Ltd to the Nifty 50 in September, and Nuvama analysts estimate this could bring $695 million into BSE.
FTSE Russell said BSE meets the criteria to be an eligible exchange for its equity indices.
BSE main-board stocks will first be assessed for index eligibility during FTSE Russell’s March 2027 review.
New BSE main-board IPO listings will qualify for fast-track screening.
For dual-listed companies passing liquidity tests on both exchanges, FTSE Russell will select the NSE-listed security.
NSE plans to add BSE Ltd to the Nifty 50 in September, which Nuvama analysts estimate could attract $695 million in inflows.
- Who
- FTSE Russell, the Bombay Stock Exchange (BSE), the National Stock Exchange (NSE), and Nuvama analysts.
- What
- FTSE Russell determined that BSE meets its eligibility criteria, allowing BSE-listed stocks to be assessed for potential inclusion in its equity indices.
- Where
- India, involving the Bombay Stock Exchange and National Stock Exchange.
- When
- The announcement was published on August 21, 2026; the first BSE assessment is scheduled for March 2027, and NSE’s planned Nifty 50 change is effective in September. One report describes the announcement as Thursday and another as Friday.
- Why
- The decision creates a potential route for qualifying BSE-listed companies to enter FTSE Russell indices and attract passive investment flows.
Key facts
- Eligibility decision
- FTSE Russell said BSE meets the criteria to be an eligible exchange for its equity indices.
- First assessment
- BSE main-board stocks will be assessed beginning with FTSE Russell’s March 2027 review.
- IPO treatment
- Stocks newly listed on BSE’s main board through initial public offerings will be eligible for fast-track screening.
- Dual listings
- When dual-listed companies pass liquidity tests on both exchanges, FTSE Russell will select the NSE-listed security.
- Selection rationale
- FTSE Russell said NSE has greater participation from international institutional investors.
- Nifty 50 change
- NSE plans to add BSE Ltd to the benchmark Nifty 50, effective September.
- Estimated inflows
- Nuvama analysts estimated that the Nifty 50 inclusion could bring approximately $695 million in inflows for BSE.
Sources
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